Advanced Options Trading Concepts
Learn advanced options trading techniques and concepts that offer unique opportunities for experienced traders.
![Woman Looks at Trading Screen on Laptop](https://www.investopedia.com/thmb/hmTlMbIQ4uJtWYI5Rtd9cP4lAf8=/3865x2576/filters:no_upscale():max_bytes(150000):strip_icc()/business-financial-and-forex-concept--hipster-young-woman-freelancer-thinking-about-her-job-and-using-computer-laptop-showing-trading-graph-with-the-stock-exchange-trading-graph-screen-background-807201430-5962b6b95f9b583f180d921e.jpg)
What Is the Jade Lizard Options Strategy?
![Gamma: A measure of the rate of change in an option's delta per one-point move in the underlying asset's price.](https://www.investopedia.com/thmb/a39Bui17BZQrTG0ajVTtAHRAFwc=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/gamma.asp-final-777c9597a6714672b382f4914eaccdfc.png)
What Is Gamma in Investing and How Is It Used?
![Vega: A measurement of an option's sensitivity to changes in the volatility of the underlying asset.](https://www.investopedia.com/thmb/7Po5n0e0ExozoJ1-AGjKZUZEuvY=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/Vega_sketch_final-d273d887b8864652af28da1571da4622.png)
What Is Vega? Definition in Options, Basics, and Example
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Understanding the Binomial Option Pricing Model
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The Importance of Time Value in Options Trading
![Business man holding phone option trading](https://www.investopedia.com/thmb/F2zNJjiRHWYv5mIQP_zbuj7D4RI=/4000x2668/filters:no_upscale():max_bytes(150000):strip_icc()/Primary-Image-how-to-trade-options-on-webull-7500939-303e731955e5479ab73979c61c2e0370.jpg)
Straddle vs. Strangle: What's the Difference?
![Bull Put Spread: An options strategy used when the investor expects a moderate rise in the price of the underlying asset.](https://www.investopedia.com/thmb/qay2Y3VM-5jofla_4gqIzU5bjjA=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/Bullputspread_final-fc4d98b8578e4126889afe10722a0817.png)
Bull Put Spread: How (and Why) To Trade This Options Strategy
![Collar: An options strategy implemented to protect against large losses.](https://www.investopedia.com/thmb/0GgIHKit2vqOfrTfM6yL82wfexc=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/collar-final-8cf92d5817a44e9296b3ce605384a25b.jpg)
The Collar Options Strategy Explained in Simple Terms
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Preemptive Rights: Some Shareholders Get First Dibs on New Stock
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What Is a Seagull Option? Definition and How They Work in Trading
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What Happens to an Option When a Stock Splits?
![scale](https://www.investopedia.com/thmb/B6Yb3DZCJz6k-rC28MZJRr4tZYA=/3712x2683/filters:no_upscale():max_bytes(150000):strip_icc()/tungsten-toned-view-of-a-suspended-balance-scale-stk20156bid-574e56955f9b5851659acfe3.jpg)
Options Arbitrage Opportunities via Put-Call Parity
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Factors That Influence Black-Scholes Warrant Dilution
![Theta](https://www.investopedia.com/thmb/eur4RQfG8Bpx_Qugj2QqXI05Lx8=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/Theta-a603b898c11243c0bde5da34f74fa83f.jpg)
Theta: What It Means in Options Trading, With Examples
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Breaking Down the Binomial Model to Value an Option
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Gamma-Delta Neutral Option Spreads
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Bull Vertical Spread: What it is, How it Works, Example
![Kurtosis: A statistical measure used to describe the distribution of observed data around the mean.](https://www.investopedia.com/thmb/mK7NMexRxLVFp3RCAty1AqbY7X0=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/kurtosis.asp-final-1fc7ca0658304918ab7a5890691eb99f.png)
Kurtosis: Definition, Types, and Importance
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Bear Spread: Overview, and Examples of Options Spreads
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Long Straddle: What It Is and How It's Used
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Bermuda Option: What They Are, Examples, Pros and Cons
![Computer screen with options volatility candlestick charting](https://www.investopedia.com/thmb/ALr_778Rwzgx70WiCCIlLTSmdP8=/5472x3648/filters:no_upscale():max_bytes(150000):strip_icc()/VolatilitySmile-4e7d8bf30fba4c4c8ae11fbb900acb72.jpg)
What Is a Volatility Smile and What Does It Tell Options Traders?
![Boom](https://www.investopedia.com/thmb/SYUYi4wxFWpy0rQSA1oNjZLzO9g=/960x640/filters:no_upscale():max_bytes(150000):strip_icc()/Percent-Boom-Stock-Exchange-Pay-Plus-Economy-2648118-dc28cec1fa2546a2b51edcf261df8519.jpg)
The Iron Condor
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Multi-Leg Options Order: Definition, Strategies, Examples
![White fence](https://www.investopedia.com/thmb/1pxlhzhIl4qdFw1PkVnq7qrixqQ=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/white-fence-861606930-e24383845f294d9e97dc988802ad01f6.jpg)
Lattice-Based Model: What it Means, How it Works
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Single Payment Options Trading: What It Is, How It Works
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Put on a Put
![A pair of traders use desktop computers and discuss forming a short straddle strategy for a security they follow.](https://www.investopedia.com/thmb/8avePGitY4MnanNKtBQP3UXQ1wM=/5819x3879/filters:no_upscale():max_bytes(150000):strip_icc()/ShortStraddleOptionStrategiesandExamplesGettyImages-1571267920-db11bd3798b44505983675f1dec68965.jpg)
Short Straddle: Option Strategies and Examples
![A market maker in front of multiple monitors with market charts](https://www.investopedia.com/thmb/Hl6e3CdUlRMHtr_bAwrTWO51kFo=/5120x2880/filters:no_upscale():max_bytes(150000):strip_icc()/Trade-Or-FadeRule-26a4d9543b5249118301b28987e2de0b.jpg)
Trade-Or-Fade Rule: What It Means, How It Works, Shortfalls
![Chart](https://www.investopedia.com/thmb/YVv65bQsAcbYXVlhWzU1167eDyc=/1920x1078/filters:no_upscale():max_bytes(150000):strip_icc()/chart-1942059_1920-3d68135351f04564b6b7f35c551fa58f.jpg)
Understanding the Options Premium
![Analysis](https://www.investopedia.com/thmb/lDh8FrmKRc92t8acTx-qgmx0Acg=/1631x1080/filters:no_upscale():max_bytes(150000):strip_icc()/charts-computer-data-desk-document-facts-1515457-pxhere.com-b555ffcf5fff46a39dda9811a5dbbadf.jpg)
The Dangerous Lure of Cheap Out-of-the-Money Options
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Call Ratio Backspread Definition, How to Use It, Example
![Trader on the floor of an exchange pointing to something on a monitor and explaining something to another person](https://www.investopedia.com/thmb/W_S8M3eOXK6_hzY1gpPeRMOHhw0=/6000x4000/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-2032897735-e25835cdd85f41f4963ea188cbf1fbe3.jpg)
Knock-In Option Explained, With Different Types, Examples
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Curve Steepener Trade: Definition, Example, and Trading Strategy
![A business woman using a calculator.](https://www.investopedia.com/thmb/zt3aYU8ce_WJXarzebTje1WJ9sc=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1163108997-1bd4934b2d3f42b4ba2a987d754db611.jpg)
How Can I Calculate the Delta Adjusted Notional Value?
![Money](https://www.investopedia.com/thmb/xPyR_JHjgBIda9EIkztCYyase_o=/1620x1080/filters:no_upscale():max_bytes(150000):strip_icc()/pen-money-office-business-product-cash-859216-pxhere.com-e976a1beceae444d821a0ea653ec4dc8.jpg)
The Alphabet Soup of Credit Derivative Indexes
![Business financial and forex concept, Hipster young Woman freelancer thinking about her job and using computer laptop showing trading graph with the stock exchange trading graph screen background](https://www.investopedia.com/thmb/ZtrTQWfvIxCIngEMGcfXaS7yOOU=/3864x2576/filters:no_upscale():max_bytes(150000):strip_icc()/business-financial-and-forex-concept--hipster-young-woman-freelancer-thinking-about-her-job-and-using-computer-laptop-showing-trading-graph-with-the-stock-exchange-trading-graph-screen-background-807201430-5be77acc46e0fb002ddbfe70.jpg)
Understand the Option Risk With Covered Calls
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Interest Rate Collar: Definition, How It Works, Example
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Delta-Gamma Hedging: Definition, How It Works, Example
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Flexible Exchange Option (FLEX): Components, How it Works
![Financial Services, Viewing Financial Markets for Investing](https://www.investopedia.com/thmb/r2dzza9bxGISFQA_MF9gEcZqCkQ=/1500x1125/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-507826251-a4e26c665afe46cb8fb68f6339303230.jpg)
Strip Options: A Market Neutral Bearish Strategy
![Cropped Image Of Man Checking Stock Market On Mobile Phone](https://www.investopedia.com/thmb/yX3-zl5t7F0Aa3y_kuLeE6nHGv8=/2120x1414/filters:no_upscale():max_bytes(150000):strip_icc()/cropped-image-of-man-checking-stock-market-on-mobile-phone-1051266664-168092c0f87245f0aa68033257f401b1.jpg)
Asset Swapped Convertible Option Transaction (ASCOT) Overview
![Credit Default Swap Index (CDX): A benchmark index that tracks a basket of U.S. and emerging market single-issuer credit default swaps.](https://www.investopedia.com/thmb/jzy4ZpPVAr16HSKgRb8FY56QILo=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/dowjonescdx.asp-final-69ba4e76b3984294a1ab3c78562cb43a.png)
Credit Default Swap Index (CDX): What It Is and How It Works
![Shareholder](https://www.investopedia.com/thmb/fA0zHH-GhcTdRVllsJ7SP9-kUrE=/1200x800/filters:no_upscale():max_bytes(150000):strip_icc()/shareholder-4fd93eb326fe4c09af5a0a62be8cf851.jpg)
Full Ratchet Anti-Dilution: Definition, Example, and Alternative
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Strap Options: A Market Neutral Bullish Strategy
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Spread Option: Definition, Examples, and Strategies
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Bermuda Swaption: What it is, Styles, Pricing
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How to Execute the Iron Condor Strategy
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Fiduciary Call: What it is, How it Works
![Structured Note](https://www.investopedia.com/thmb/b85C5r-uybA_3rcVv38EmqxwEpA=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/structurednote.asp-final-74e86041a2424b52a2408e06d79677cd.jpg)
Structured Note: What It Is, How It Works, and Common Types
![Bear Put Spread: Purchasing put options while also selling the same number of puts on the same asset with the same expiration date at a lower strike price.](https://www.investopedia.com/thmb/4fflOYkk4oiUwd4cH_EQ0Nlm48k=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/Bearputspread_final_rev-78dc67d6951c45a999f315e73feb8aed.png)
Bear Put Spread: Definition, Example, How It's Used, and Risks
![Option-Adjusted Spread (OAS): A way for investors to compare the yield of two different fixed-income offerings that have embedded options.](https://www.investopedia.com/thmb/MSDsnUWr2SwYKw1JRN-lyLAIa_8=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/optionadjustedspread.asp-final-3cb5fb69311f4188b14d3064efba3163.png)
What Is Option-Adjusted Spread (OAS)? Definition and Example
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Implied Volatility
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Profiting From Position-Delta Neutral Trading
![close up of man hand analyzing stock market chart](https://www.investopedia.com/thmb/3Nuqb9AEPBP4BocKnrp7AiK8p0g=/6000x4000/filters:no_upscale():max_bytes(150000):strip_icc()/close-up-of-man-hand-analyzing-stock-market-chart-1023021802-e5e288d56a9d412c8aa31cc6d908910b.jpg)
Advanced Option Trading: The Modified Butterfly Spread
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What Is a Hybrid Security and What Are Different Types?
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Accordion Feature: What it Means in a Loan Agreement, Examples
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Land Lease Option: What It Is, How It Works, Example
![Cardboard peeled back over words "are you covered?"](https://www.investopedia.com/thmb/RX9LGEqS2TJC61_OaGwdsW7auzI=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1012999598-3114048d291e411c96fb1c54de2bb511.jpg)
Write Covered Calls to Increase Your IRA Income
![businessman using a mobile device to check market data](https://www.investopedia.com/thmb/acOoDEj353Vt1uEDaq8nvwsf1ag=/2120x1414/filters:no_upscale():max_bytes(150000):strip_icc()/businessman-using-a-mobile-device-to-check-market-data-1027438182-b5b81affa280494dbea75659fed10f48.jpg)
What Is an Iron Butterfly Option Strategy? Example and How to Use
![Business Concept](https://www.investopedia.com/thmb/4wghZ8g2JfDHP9h51kUCgeu3-w8=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1143432248-4359aaf6940d4ad9acde55f22abee03e.jpg)
A Beginner's Guide to Embedded Options in Bonds
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Compound Option: Meaning, Variations, Example
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Perpetual Option (XPO): What it Means, How it Works, Example
![Midsection Businessmen Analyzing Charts On Laptop In Office](https://www.investopedia.com/thmb/o3WolPIrbn29Eqz78HWzYgvw1lc=/6000x4000/filters:no_upscale():max_bytes(150000):strip_icc()/midsection-businessmen-analyzing-charts-on-laptop-in-office-1128046391-4d6016296f824cd48bf762d5824e49e4.jpg)
How a Protective Collar Options Strategy Works
![Conceptual rendering of financial charts in blue with inset of globe showing Africa, Europe, and part of Asia](https://www.investopedia.com/thmb/UatERCiU5FGnvDW_7sWXDKp0hUE=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/71017529-5bfc2b8dc9e77c0026b4f91d.jpg)
One-Touch Option: Meaning, Overview, Outcomes